More American workers are finding their place in the unemployment line as job losses climb to record numbers. According to a recent statistic from the Labor Department, the unemployment rate jumped in February to 8.1%, which is the highest level in over 25 years. Mortgage rates have began rising again, and housing data is down across the board.
Despite the efforts the Obama administration has been making to create 3.5 million jobs via the $787 billion stimulus plan and increase lending to consumers, it appears that losses are occurring faster than the creation of any new jobs would ever be able to match. In February alone, 651,000 employers let their workers go, making it the third month straight that over 600,000 employees have lost their jobs. This is the first time we’ve seen numbers like this since the data began in 1939.
But despite all of the bad news, there have been a few good moments. For instance, new numbers show that government payrolls increased by 9,000 in February. In the same month, 26,000 jobs were added to both the education and health providers sectors.
Is There Any Hope for a Recovery Soon?
Not quite. With more than 103,000 individuals and companies filing for bankruptcy in February, 8.3 million Americans holding underwater mortgages in the fourth quarter, and a 30% chance that this recession will slide into a depression, the light is slowly fading.
How long do you think it will take for our economy to start recovering?